Fiduciary Duty in the 21st CEntury

Fiduciary Duty in the 21st Century

​​Former US Vice President and Chairman of Generation Investment Management, Al Gore, introduces the Fiduciary Duty in the 21st Century programme, which finds that, far from being a barrier, there are positive duties to integrate environmental, social and governance factors in investment processes.

For an overview of the on-going progress to implement global policy reform to clarify investors' and asset managers' duties, view the programme's slide deck here. The programme is honored to have been selected byInvestments and Pensions Europe for the 2017 Outstanding Industry Contribution gold award. ​

​Fiduciary duties exist to ensure that those who manage other people’s money act in their beneficiaries' interests, rather than serving their own interests. The manner in which fiduciary duty is defined has profound implications.

Some institutional investors believed that environmental, social and governance (ESG) issues were not relevant to portfolio value, and were therefore not consistent with their fiduciary duties. This assumption is no longer supported.

Decisions made by fiduciaries cascade down the investment chain affecting decision-making processes, ownership practices, and ultimately, the way in which companies are managed.

This project contributes an extensive evidence base to end the debate on whether fiduciary duty is a legitimate barrier to the integration of environmental, social and governance issues in investment practice and decision-making. Additionally, the roadmaps set out recommendations to fully embed the consideration of ESG factors in the fiduciary duties of investors across eight capital markets. ​